As of September 2024, the TSP G Fund interest rate is 4.000%. The rate is calculated monthly, based on the average yield of all U.S. Treasury securities with 4 or more years to maturity. The chart and table below show the recent history of the G Fund rate. The rate has fluctuated in the 0.75% to 5.00% range since 2012:
| Date | Interest Rate |
| September 2024 | 4.000% |
| August 2024 | 4.125% |
| July 2024 | 4.500% |
| June 2024 | 4.625% |
| May 2024 | 4.750% |
| April 2024 | 4.250% |
| March 2024 | 4.375% |
| February 2024 | 4.125% |
| January 2024 | 4.000% |
| December 2023 | 4.500% |
| November 2023 | 5.000% |
| October 2023 | 4.750% |
Historical interest rates for the G Fund
The G Fund interest rate is near all-time lows. But if you look back further in history to the late 1980s, the G Fund returned over 9 percent per year:
The G Fund compares very favorably to other risk-free investments. For example, in July 2013, the G Fund interest rate was 2.125%. By comparison, the best Bank CDs were yielding 0.45% for a 3-month term, or 1.8% for a 5-year term. Also, from the chart above you can see that the interest rate on the G Fund is almost always higher than the 3-month Treasury Bill yield.
G Fund Returns
The G fund will not lose money — its returns are guaranteed by the U.S. Government. That makes it very different from a typical bond fund, where your principal fluctuates with the rise and fall of interest rates. The chart below shows the historical performance of the TSP G Fund, and is updated every business day with the latest TSP G Fund price:
The G Fund has earned a compound annualized return of 4.2% since August 1990. Its year-to-date return is 3.11%, and its 1-year return is 4.57%. A $1,000 investment in 1990 would be worth $4,119 today.
FAQs
As of September 2024, the TSP G Fund interest rate is 4.000%.
| Date | Interest Rate |
|---|
| January 2024 | 4.000% |
| December 2023 | 4.500% |
| November 2023 | 5.000% |
| October 2023 | 4.750% |
8 more rowsTSP G Fund Rates of Return
As of July 2024, the G Fund rate of return, currently at 4.625%, is the highest it has been in a number of years. The G fund rate has declined from 4.75% in July 2024 due to the anticipation that the Federal Reserve will begin to cut interest rates later in the year.
What is the average interest rate for TSP? ›
TSP Funds
| “Classic” TSP Lifecycle Funds 8/1/2005 - 9/9/2024 | TSP L Income Fund | TSP L 2050 Fund |
|---|
| 5-Year Return | 4.87% | 10.04% |
| 10-Year Return | 4.27% | 8.55% |
| Annual Return Since 8/1/2005 | 4.4% | 9.4% |
| Annualized Standard Deviation | 4.0% | 14.1% |
8 more rowsHere's the ratio we recommend for your portfolio: 80% in the C Fund, which is tied to the performance of the S&P 500. 10% in the S Fund, which includes stocks from small- to mid-sized companies that offer high risk and high return. 10% in the I Fund, an international fund that invests in stocks from overseas companies.
What is the best TSP fund to invest in in 2024? ›
TSP funds make a healthy jump in May
| Thrift Savings Plan — May 2024 Returns | | |
|---|
| F fund | 1.69% | -1.56% |
| C fund | 4.96% | 11.29% |
| S fund | 3.36% | 3.38% |
| I fund | 4.86% | 7.59% |
12 more rowsJun 3, 2024
The S Fund is considered one of two funds with the greatest risk in the TSP. 5 It has outperformed the C Fund with proportionately greater volatility over time.
What happened to the TSP G fund? ›
TSP G Fund Suspended
In 2023, the TSP G fund was suspended due to the debt limit.
Is TSP G fund a good investment? ›
For those close to or in retirement, TSP G Fund is also a great liquid asset to hold money you expect to need over the next few years that may not be covered by Social Security or pension payments.
What is the TSP loan interest rate? ›
Interest Rate and Repayment Terms of a TSP Loan
The interest rate of the TSP is based on the G Fund's interest rate in the prior month. The current interest rate is 4.375% (April 2024). TSP will notify your payroll office and start payroll deduction based on the repayment period you selected.
Is 5% in TSP good? ›
If you aren't putting at least 5% of your income into your TSP, to maximize the matching contributions from your agency, you're turning down free money. You may already be at 5% and not know it.
There is no such thing as too much money in the Thrift Savings Plan. If you want your TSP balance to be able to generate an inflation-indexed annual income of $10,000, most financial planners will suggest that you have a $250,000 balance at the time you retire.
Which TSP fund has the best return? ›
The final finishes for the core TSP stock funds are:
- C Fund: 26.25%
- S Fund: 25.30%
- I Fund: 18.38%
Dave Ramsey's advice is to save 5% into the TSP to get the full match, then max out a Roth IRA, and then put more into the TSP if you are able to save more after that.
Why is my TSP losing money? ›
Fees and Expenses: While the TSP has low fees compared to many other retirement plans, fees and expenses can still impact your overall returns and potentially lead to losses. Lack of Diversification: If your TSP investments are concentrated in a few funds or asset classes, you may be exposed to higher risks.
What is a good percentage to put in TSP? ›
Although, you will reach the regular TSP limit before the end of the year, you will continue to receive the Agency Matching contributions for the remainder of the year to which you are entitled, as long as you are contributing at least 5% of your bi-weekly gross pay each pay period.
What is the average TSP balance at retirement? ›
The average Thrift Savings Plan balance for Federal Employees Retirement System participants — 3.3 million people — was $138,933 in January. That compares to an average TSP account balance of $146,642 for the 314,193 Civil Service Retirement System participants.
